Money Map Reporthttp://moneymapreport.com
Money Map Report identifies the most important global trends and breakthroughs, bringing readers outstanding profit-making opportunities.Wed, 07 Dec 2016 20:47:40 +0000en-UShourly1http://wordpress.org/?v=4.2.10Why Tech Leaders Are Tripping Over Themselves to Curry Trump’s Favorhttp://moneymapreport.com/2016/12/07/why-tech-leaders-are-tripping-over-themselves-to-curry-trumps-favor/#utm_source=rss&utm_medium=rss&utm_campaign=why-tech-leaders-are-tripping-over-themselves-to-curry-trumps-favor
http://moneymapreport.com/2016/12/07/why-tech-leaders-are-tripping-over-themselves-to-curry-trumps-favor/#commentsWed, 07 Dec 2016 20:47:40 +0000http://moneymapreport.com/2016/12/07/why-tech-leaders-are-tripping-over-themselves-to-curry-trumps-favor/Silicon Valley leaders know they bet on the wrong horse – and now they’re not accepting a meeting invitation by President-elect Trump so much as they are being summoned by him. Here’s Keith on why so many tech titans have their tails between their legs. The post Why Tech Leaders Are Tripping Over Themselves to[...]

]]>Silicon Valley leaders know they bet on the wrong horse – and now they’re not accepting a meeting invitation by President-elect Trump so much as they are being summoned by him. Here’s Keith on why so many tech titans have their tails between their legs.

]]>http://moneymapreport.com/2016/12/07/why-tech-leaders-are-tripping-over-themselves-to-curry-trumps-favor/feed/0Trump’s Chinese Policy May Be Lots of Things – But Stupid Isn’t One of Themhttp://moneymapreport.com/2016/12/07/trumps-chinese-policy-may-be-lots-of-things-but-stupid-isnt-one-of-them/#utm_source=rss&utm_medium=rss&utm_campaign=trumps-chinese-policy-may-be-lots-of-things-but-stupid-isnt-one-of-them
http://moneymapreport.com/2016/12/07/trumps-chinese-policy-may-be-lots-of-things-but-stupid-isnt-one-of-them/#commentsWed, 07 Dec 2016 16:36:07 +0000http://moneymapreport.com/2016/12/07/trumps-chinese-policy-may-be-lots-of-things-but-stupid-isnt-one-of-them/Policy insiders and political apparatchiks were aghast when Trump took a congratulatory call from Taiwanese President Tsai Ing-Wen, then tweeted about it. And they couldn’t wait to explain the “gaffe.” Only it wasn’t a gaffe at all. What Trump did was brilliant and potentially very, very profitable. Here’s what everybody is missing. No doubt you’ve[...]

]]>Policy insiders and political apparatchiks were aghast when Trump took a congratulatory call from Taiwanese President Tsai Ing-Wen, then tweeted about it. And they couldn’t wait to explain the “gaffe.”

Trump’s Vow to Target China’s Currency Could Be First Step to Trade War – The Wall Street Journal

Speaking to Taiwan’s President last Friday was the move of “bottomless pig-ignorance,” according to an anonymous liberal foreign policy commentator cited in The Chicago Tribune. Others were far less generous.

Oh, really?

Think about this for a second.

Most people who believe Trump is off the rails are Washington insiders with huge vested interests to protect on both sides of the aisle. Very few of ’em have ever visited China, let alone spent decades in global markets.

China-bears have called for a total collapse every year there for the last 40 years.

Admittedly, their arguments are alluring and certainly sound convincing.

I know because I hear investors all over the world parrot them… China can’t succeed because it’s Communist, because China doesn’t have free markets, because China doesn’t have an advanced legal system, because there are ghost cities, non-performing loans, the data’s cooked… yada, yada, yada.

I really feel for these guys. They’ve called for China’s collapse and total economic devastation every year for the past 40 years, and for 40 years they’ve been dead wrong.

Most investors are stunned to learn that China has had the world’s largest economy for 18 out of the last 20 centuries. If anything, American economic strength over the last 200 years is the aberration.

China’s economy is 25 times larger today than it was in 1990. Cooked or not, you’re talking about a growth rate backed by 1.6 billion people and a middle class that is now more than 600 million strong.

Chinese consumer consumption is growing by double-digits and has been for decades at a rate that’s more than double its GDP growth. Cars, stereos, washing machines, and even mundane stuff like toilet paper sell in quantities that are unimaginable here.

What’s more, they’re on the move.

Flush with cash, Chinese consumers are now the single largest outbound tourism group in the world with more than 120 million having hit the road last year alone. That number will top more than 200 million a year by 2020 and require more than 7,000 new aircraft worth more than $1 trillion to carry them, according to Boeing.

Simply put, anybody who bets against China long-term is asking for trouble.

Just last year Barron’s published a September cover story suggesting that China’s Alibaba was ripe for a 50% fall. Shares were actually up 60% just 12 months later, making a mockery of the doom and gloom crowd.

Obviously, nothing goes up forever. There will be ups and downs but those are nothing more than a temporary blip. It’s naïve to think otherwise.

What I want you to understand when it comes to China is that a rising tide raises all boats there, just like it does here. That’s why every CEO worth his or her salt is pursuing growth in China, or at a minimum because of China.

It’s why Zuckerberg is making overtures to Chinese officials – and even learning flawless Mandarin – in an effort to win approval for his website’s launch there, saying “you can’t have a mission to connect the world while leaving out the world’s biggest country.” It’s why Tim Cook is so determined to hold on to Apple’s head start in market share in China. It’s why more than 28 nations – including, most recently Egypt last week – have signed bilateral currency swap agreements worth in excess of $400 billion directly with China that bypass traditional foreign exchange markets.

Investors anxious to condemn China forget, conveniently or deliberately, that we had 20 depressions in the United States during the 19th century. We also had tremendous pollution, child labor, exploited workers, robber barons, and shoddy infrastructure. We even had a civil war.

Yet, the United States still became a global superpower and the most profitable financial market in recorded history. Investors who went along for the ride made millions. No scratch that… billions.

China’s simply coming up to speed, which is why you want to find a way to play along.

Here’s the same chart overlaid against US GDP figures. I don’t know an investor in the world who can look at that chart honestly and believe that failure is imminent.

Again, I know that’s not a comforting thought.

But recognize that you’ve been spoon-fed an ongoing narrative by Washington and the mainstream media and issued an ideological straightjacket intended to keep you from challenging the status quo and their protected interests.

Critical messages are often delivered by third parties in China, which is why an indirect move like Trump’s can deliver what conventional communications cannot when something truly important must be “said.”

The Chinese, of course, have to “protest” officially because Trump’s actions represent a public push back to the narrative they’ve carefully crafted for their own people. That’s why there will also be a blizzard of stories in Chinese state-owned papers portraying Trump as an amateur dolt in the weeks ahead. In that sense, the outrage they’re expressing is little more than stage management.

The U.S. press very conveniently glossed over the fact that China actually knew the call was coming ahead of time, and that legendary statesman Henry Kissinger was the one who told them it was going to happen during a meeting with President Xi Jingping in Beijing beforehand. So did the Chinese press when they realized that they’d been outmaneuvered.

The reality is that China needs us just as much as we need them.

China’s exports to the U.S. were worth $483 billion while U.S. exports to China were around $116 billion in 2015. Roughly 35% of China’s GDP comes from “processing trade,” which means they’re importing components from other countries, assembling them, and then exporting finished goods.

China has respected strength and exploited weakness for more than 5,000 years. There is no doubt in my mind that Beijing’s leadership is acutely aware that it will have to stop cheating on trade or risk a very public loss of “face” when Trump calls them on it.

That’s why Trump’s call was so brilliant.

He’s putting the Chinese on notice that America will no longer accept a position of condescending weakness and that the very carefully orchestrated charade played out over the last several decades is over.

And what does that mean for your money?

Two words… big profits.

Start with an obvious choice like Alibaba Group Holding Ltd. (NYSE:BABA), which dominates Chinese e-commerce the way Amazon.com Inc. (NasdaqGS:AMZN) does in the United States. Flesh out your portfolio with a choice like Baidu Inc. (NasdaqGS:BIDU),which mirrors Alphabet Inc. (NasdaqGS:GOOG).

You could buy a Chinese ETF like Guggenheim Small Cap China ETF (NYSEArca:HAO) and do okay but I think very specific choices like the two I’ve just mentioned are going to be far more profitable than the “one-size fits all” approach that sweeps in questionable trash for your hard earned cash.

And if you really want to dive in but don’t feel comfortable investing directly in China?

I get that question a lot.

American companies with big plans, well-known brands, and lots of locations are your ticket because they’re tapped into the Chinese consumer market.

My favorite right now is Starbucks Corp. (NasdaqGS:SBUX).

The company is going local and plans to have more than 5,000 stores open by 2021, which represents a 1,150% increase from the 400 they had open in 2011.

I like the fact that the company is constantly improving Chinese operations and, in the process, making the most recently opened stores orders of magnitude more profitable than earlier iterations.

I’m particularly excited by plans to open a 30,000-square foot premium roastery on West Nanjing Road in Shanghai’s uber-busy shopping district because that will help reinforce the premium coffee concept at a time when Chinese consumers are perfectly positioned to spend $5 a cup on flavored water.

I hope to be there in 2017 when it opens and will, of course, report on what I find.

]]>http://moneymapreport.com/2016/12/07/trumps-chinese-policy-may-be-lots-of-things-but-stupid-isnt-one-of-them/feed/0Keith: It’s Tempting to See The U.S. As The Only Investors’ Game In Town – But Don’t Forget Chinahttp://moneymapreport.com/2016/12/05/keith-its-tempting-to-see-the-u-s-as-the-only-investors-game-in-town-but-dont-forget-china/#utm_source=rss&utm_medium=rss&utm_campaign=keith-its-tempting-to-see-the-u-s-as-the-only-investors-game-in-town-but-dont-forget-china
http://moneymapreport.com/2016/12/05/keith-its-tempting-to-see-the-u-s-as-the-only-investors-game-in-town-but-dont-forget-china/#commentsMon, 05 Dec 2016 18:43:48 +0000http://moneymapreport.com/2016/12/05/keith-its-tempting-to-see-the-u-s-as-the-only-investors-game-in-town-but-dont-forget-china/Europe’s economy is a bug in search of a windshield, and the U.S. economy has undeniably shown some bright spots in recent months. But focusing inward and giving up China’s growth markets is an extremely expensive proposition – as the world’s savviest CEOs are showing. The post Keith: It’s Tempting to See The U.S. As[...]

]]>Europe’s economy is a bug in search of a windshield, and the U.S. economy has undeniably shown some bright spots in recent months. But focusing inward and giving up China’s growth markets is an extremely expensive proposition – as the world’s savviest CEOs are showing.

]]>http://moneymapreport.com/2016/12/05/keith-its-tempting-to-see-the-u-s-as-the-only-investors-game-in-town-but-dont-forget-china/feed/0Trump Could Usher In a New “Meiji Moment” Worth Billionshttp://moneymapreport.com/2016/12/02/trump-could-usher-in-a-new-meiji-moment-worth-billions/#utm_source=rss&utm_medium=rss&utm_campaign=trump-could-usher-in-a-new-meiji-moment-worth-billions
http://moneymapreport.com/2016/12/02/trump-could-usher-in-a-new-meiji-moment-worth-billions/#commentsFri, 02 Dec 2016 19:35:27 +0000http://moneymapreport.com/2016/12/02/trump-could-usher-in-a-new-meiji-moment-worth-billions/[Tokyo] – Having rolled off the plane and successfully navigated the wilds of Tokyo’s notoriously busy subway system on my way into the city, I made a beeline for my favorite guilty pleasure – the neighborhood sushi shop. And the questions started almost as soon as I sat down elbow to elbow with other patrons…[...]

]]>[Tokyo] – Having rolled off the plane and successfully navigated the wilds of Tokyo’s notoriously busy subway system on my way into the city, I made a beeline for my favorite guilty pleasure – the neighborhood sushi shop.

And the questions started almost as soon as I sat down elbow to elbow with other patrons…

…what did I make of Trump?

…would he be a “real” president?

…is he as unpredictable as he seems?

As always, it wasn’t so much the questions that interested me, but rather, the unspoken “language” driving them.

You wouldn’t believe what it says about what’s next for your money.

Shock Treatment for Japan’s “Lost Decades”

Japan’s got every reason to come to terms with Trump quickly and effectively.

It is the world’s third largest economy, a long-time economic trading partner with hundreds of billions on the line, and key to strategic interests here in the Pacific.

But… how, exactly?

Japanese politicians were completely stunned by Trump’s victory, which is entirely understandable because they suffer from the same sort of erudite institutional bias that ruling elites all over the world do. They have no idea what to make of Trump’s victory, let alone the man.

Japanese citizens, on the other hand, don’t seem to have that problem. Most of the people I’ve run into on this trip, in fact, are far more pragmatic about a Trump presidency. By and large, they’re also respectful, even if the reasons driving Trump’s election are not readily apparent.

Most of that is pretty straight-forward. Having spent the better part of my adult life here, I wouldn’t expect anything else.

Then, it got real as I reached for another plate of maguro and our conversation took an unexpected twist…

…what if Trump forced Japan to change?

To my way of thinking, that would make him like Commodore Mathew Perry, who steamed into Tokyo Bay in 1853 and forced the Tokugawa Shogunate to open trade after 250 years of seclusion.

We’re used to hearing the gunboat diplomacy argument in our history books, as are the Japanese in theirs. Perry wasn’t exactly subtle considering he had a fleet of “black ships” with him and punctuated his message with cannon.

Without realizing it, my new friends Masa and Taka were referencing Perry’s arrival as the start of more than a century of openness and economic development that happened at jaw-dropping speed. And, by implication, wondering if Trump could be the singular influence that forces Japan to open up a second time.

Not only do I think that’s possible, but entirely likely.

Japan’s economic machine has languished since the early 1990s and the so-called “lost decade” that was supposed to be over in a mere 10 years has never ended. The once-vaunted Nikkei trades at only 86% of its peak value, employment has never really gotten back on track nor have property values.

Demographics are going in the wrong direction. The nation now suffers under the highest debt to GDP ratio on the planet… a whopping 600%+ if you factor in combined public, private, and government debt according to PIMCO’s Jamil Baz this past August.

Prime Minister Shinzo Abe’s recovery programs are working no better than those of his predecessors, and by all accounts it will take something truly earth-shattering to put things back on track.

But Trump??!!

For most investors, this is as unthinkable – just as Trump’s victory is to long-time Japanese politicians – but for that very reason, it’s plausible.

Japan, you see, has a long history of making profound changes that are frequently borrowed from outside influences and “Japanified” as they happen. Written Japanese, for example, originally came from Chinese, as did Buddhism, architecture, city planning, masked drama, and more.

Shortly after Commodore Perry did his thing, a group of forward-looking Japanese leaders and citizens began the Meiji Restoration in 1868. In little more than 10 years they turned Japan upside down and inside out while engaging in a complete changeover that modernized the government, pried open borders, and completely reformed industry.

As a side note, the 2003 action adventure film, The Last Samurai, starring Tom Cruise, captures this time period exceptionally well in case you haven’t seen it.

Anyway…

The Meiji Restoration left Japan with a sense of optimism that nothing is insurmountable. That’s why, even today – 148 years later – you don’t see the Japanese giving up.

In fact, what you see is quite the opposite. Most Japanese believe that the country can change direction if they absolutely have to, and them with it.

I think it’s just possible that Trump’s shock victory provides Japan with another “Meiji Moment” and that a similar group of forward-looking leaders will emerge to take the country in previously unimaginable directions.

That means a stronger, more entrepreneurial Japan – especially when it comes to small companies, not the exporters we usually talk about. They’re the ones with the highest economic incentive and lowest resistance to change. Plus they can move fastest as new opportunities develop because they focus primarily on domestic demand.

A choice like the iShare MSCI Japan Small-Cap ETF (NYSEArca:SCJ) is a great place to start. It’s up about 11% year-to-date and represents about 40% of the eligible small cap universe.

The other logical play for a “Meiji Moment” is the so-called “Mother’s Index” which is a Tokyo Stock Exchange listed group of Internet and Biotech firms. You can track it by purchasing the TSE Mothers Core ETF (TOPIX:1563) if your broker has access.

In closing, I’ve obviously just scratched the surface here but I find myself more excited about domestic Japanese markets than I have been in a long time.

]]>http://moneymapreport.com/2016/12/02/trump-could-usher-in-a-new-meiji-moment-worth-billions/feed/0First Brexit, Now “Quitaly”http://moneymapreport.com/2016/11/30/first-brexit-now-quitaly/#utm_source=rss&utm_medium=rss&utm_campaign=first-brexit-now-quitaly
http://moneymapreport.com/2016/11/30/first-brexit-now-quitaly/#commentsWed, 30 Nov 2016 15:32:55 +0000http://moneymapreport.com/2016/11/30/first-brexit-now-quitaly/By Keith Fitz-Gerald Dear Total Wealth Investor, Last June I wrote to you with an urgent message ahead of the “Brexantrum” that wiped $3 trillion from the world’s balance sheets in the worst two-day selloff of all time. Now it’s time to talk “Quitaly” – an event that could be 3X worse. That’s what I’m[...]

Last June I wrote to you with an urgent message ahead of the “Brexantrum” that wiped $3 trillion from the world’s balance sheets in the worst two-day selloff of all time.

Now it’s time to talk “Quitaly” – an event that could be 3X worse.

That’s what I’m calling Italy’s upcoming referendum on December 4 when millions of Italians are going to vote on what looks to be the most significant constitutional reforms since WWII ended.

What it means for your money may surprise you, especially when it comes to the profit potential I see being created when it happens.

Brexit Three-Fold

Millions of investors breathed an audible sigh of relief when the “Brexantrum” proved to be a non-event, and still millions more have fallen blithely into the trap of believing that it was a “one-off.”

That’s a terrible mistake. “Quitaly” could be orders of magnitude worse.

Naturally, politicians and economic experts won’t tell you this. They’re actively trying to downplay the upcoming vote at a time when all three of Italy’s leading opposition parties favor an “exit” from the euro.

The way I see it, Italy’s economic growth has lagged badly behind the EU for more than a decade and Italy’s population is reeling from an average 12% drop in real per capita income over the same time frame. It’s completely logical that people are going to want out of an organization that’s made their lives worse.

Italy’s economy is in the toilet, with living and economic conditions at 20-year lows. Nearly 20% of all loans on the books are non-performing, and the banking sector is hemorrhaging cash that should be going to truly viable businesses. The only question is why it’s taken so long for populist sentiment to reach a head.

The fact that policy wonks can’t see it coming tells me that the unthinkable is right around the corner.

What exactly does that look like?

First, the Italian banking system goes into freefall. That’s hard to imagine considering that the most visible of all Italian banks – UniCredit, Unione di Banche Italiane, Banca Popolare di Milano, and Banca Monte dei Paschi di Siena are all already down 60% this year and have at least $400 billion in problematic paper.

Raising desperately needed external capital becomes all but impossible, with international bond and derivatives traders jacking volatility. Italian bonds get carried out feet first while German bonds rally, as do U.S. and Japanese bonds.

Second, business confidence plummets. Capital is already fleeing the country which means, in turn, that businesses are next followed closely by capital controls that are likely being quietly discussed behind doors at the moment. This will further hollow out an already skeletal system at a time when many international investors have already frozen Italian investment plans.

Third, business reforms will fall flat. Unlike Britain, Italy has neither a viable political nor economic system. Crony capitalism is a national sport, while reform is but a concept. Post-vote incentives, therefore, would fail at worst or take on a life of their own at best. Growth and employment tank.

Then, the real fireworks begin as the euro implodes.

Again, political experts are telling you that there will have to be complex negotiations for that to happen – that you cannot abrogate international treaties by popular vote, that Italy’s court system could block constitutional reform, and my personal favorite… that the polls show Italians don’t want to leave the euro.

…and Italians will not waste the opportunity to change the status quo.

Next up… there’ll be a Frexit (France leaving), a Spexit (Spain leaving), a Nexit (the Netherlands leaving).

Other headline-worthy possibilities include a Departugal, a Czechout, Oustria, Finish, Slovlong, Latervia, Byegium.

At the end of the day, the EU could shrink all the way to Merkelislonely.

What to Do Now

This is scary stuff, which is why the overwhelming majority of investors will run for the hills when the markets go haywire if the vote goes through. That’s of course why their portfolios are a fraction of what they could be, and why they repeatedly miss out on the ginormous gains they so desperately seek.

So take a page from the likes of the legendary Jim Rogers, Warren Buffett, and the late Sir John Templeton and do three things:

Make sure your money is in the best “defensive” stocks you can buy. Companies like Raytheon Co. (NYSE:RTN) and Becton, Dickinson and Co. (NYSE:BDX) for example, aren’t going to go out of business over something like “Quitaly.” They may come under pressure, but they will not fail.

BDX, for example, was trading at a 5% discount the day after markets reeled from Brexit. Lockheed Martin Corp. (NYSE:LMT) dipped a few points but is now up more than 20% in the months that followed. Raytheon Co. and Amazon.com Inc. (NYSE:AMZN) are both up more than 10% since their brief Brexit-induced dips.

Get ready to buy. The world’s best investors constantly exploit chaos to their advantage and that’s what I want you to do. Chances are you’ve got a list of companies you’d like to own but are “too expensive” to buy at the present time. An event like “Quitaly” could bring them down to levels where you feel comfortable.

Think very carefully about which stocks you’ll let go of if the stuff hits the fan and which ones you want to keep. Think of this not in terms of gains and losses but in terms of a forced rebalancing that can boost your returns down the line. Chaos always represents opportunity – something we talk about all the time.

Obviously, I have not mentioned shorting the euro, buying the yen, or dipping into treasury markets. Those are all viable trades, but only if you have an exceptionally high risk tolerance and razor sharp discipline. Not only will you be up against panicked institutional traders, but you’ll be playing against the world’s central bankers, too. Neither is a good mix.

In closing, I’ve heard from tens of thousands of investors over the years who’ve told me they really want to be successful but have lacked the confidence and preparation needed to achieve that.

Which is, of course, why we’re talking about this now… ahead of time.

This is your chance.

Being a member of the Total Wealth Research Family gives you a huge advantage over other investors because we talk about things others are too scared to discuss and we constantly hunt for opportunity…

]]>http://moneymapreport.com/2016/11/30/first-brexit-now-quitaly/feed/0The Sector With the Most Upside In a Trump Presidencyhttp://moneymapreport.com/2016/11/28/the-sector-with-the-most-upside-in-a-trump-presidency/#utm_source=rss&utm_medium=rss&utm_campaign=the-sector-with-the-most-upside-in-a-trump-presidency
http://moneymapreport.com/2016/11/28/the-sector-with-the-most-upside-in-a-trump-presidency/#commentsMon, 28 Nov 2016 17:21:44 +0000http://moneymapreport.com/2016/11/28/the-sector-with-the-most-upside-in-a-trump-presidency/The “Trump Bump” is taking a breather this morning in major indices – but Keith sees an important story playing out elsewhere. The resilience of the Russell 2000 shows that certain smaller companies have the most upside from Trump’s agenda of tax reform and deregulation – but you can never rush into small-caps indiscriminately. Here’s[...]

]]>The “Trump Bump” is taking a breather this morning in major indices – but Keith sees an important story playing out elsewhere. The resilience of the Russell 2000 shows that certain smaller companies have the most upside from Trump’s agenda of tax reform and deregulation – but you can never rush into small-caps indiscriminately. Here’s how to isolate the biggest opportunities.

]]>http://moneymapreport.com/2016/11/28/the-sector-with-the-most-upside-in-a-trump-presidency/feed/0Dow 20,000 By Q1/2017 Is a Possibilityhttp://moneymapreport.com/2016/11/23/dow-20000-by-q12017-is-a-possibility/#utm_source=rss&utm_medium=rss&utm_campaign=dow-20000-by-q12017-is-a-possibility
http://moneymapreport.com/2016/11/23/dow-20000-by-q12017-is-a-possibility/#commentsWed, 23 Nov 2016 17:45:41 +0000http://moneymapreport.com/2016/11/23/dow-20000-by-q12017-is-a-possibility/Millions of investors were caught on the wrong side of this rally – which means even more money could be heading off the sidelines. Here’s Keith on the possibility of the Dow hitting 20,000 by next quarter. The post Dow 20,000 By Q1/2017 Is a Possibility appeared first on Total Wealth Research. Powered by WPeMatico

]]>Millions of investors were caught on the wrong side of this rally – which means even more money could be heading off the sidelines. Here’s Keith on the possibility of the Dow hitting 20,000 by next quarter.

]]>http://moneymapreport.com/2016/11/23/dow-20000-by-q12017-is-a-possibility/feed/0Why This Rally Longer-Term Will Continuehttp://moneymapreport.com/2016/11/23/why-this-rally-longer-term-will-continue/#utm_source=rss&utm_medium=rss&utm_campaign=why-this-rally-longer-term-will-continue
http://moneymapreport.com/2016/11/23/why-this-rally-longer-term-will-continue/#commentsWed, 23 Nov 2016 16:05:09 +0000http://moneymapreport.com/2016/11/23/why-this-rally-longer-term-will-continue/Keith explains why a “technical breather” for markets could take place around the holidays, and why the long-term market outlook is so strong regardless. The post Why This Rally Longer-Term Will Continue appeared first on Total Wealth Research. Powered by WPeMatico

]]>http://moneymapreport.com/2016/11/23/why-this-rally-longer-term-will-continue/feed/0Update – Ekso Bionicshttp://moneymapreport.com/2016/11/23/update-ekso-bionics/#utm_source=rss&utm_medium=rss&utm_campaign=update-ekso-bionics
http://moneymapreport.com/2016/11/23/update-ekso-bionics/#commentsWed, 23 Nov 2016 14:00:21 +0000http://moneymapreport.com/2016/11/23/update-ekso-bionics/One of the worst things an investor can do is “set it and forget it” when it comes to your money – especially in today’s markets when “buy and hold” is more akin to “buy and hope.” Buy and manage is what you want to do in the name of profits. That way you never[...]

]]>One of the worst things an investor can do is “set it and forget it” when it comes to your money – especially in today’s markets when “buy and hold” is more akin to “buy and hope.”

Buy and manage is what you want to do in the name of profits.

That way you never lose touch – not with your expectations, not with an investment you’ve chosen and certainly not with your money.

On that note, let’s check in on Ekso Bionics Holdings Ltd. (NasdaqCM:EKSO).

A Race Between Patience and Profitability

I hear from tens of thousands of investors who want a stock to go ballistic the moment they buy it.

I’m no different.

In fact, I’m hard pressed to think of anything I love more than the rush that comes with watching a stock I’ve recommended take off because I know that readers who are following along are making a killing.

It’s why we’re all here.

That’s why a stock like Ekso can be so exciting and so frustrating at the same time.

Over the years, I’ve seen plenty of companies like Ekso, so I’ve learned to balance a good deal of patience with profitability. Admittedly, that’s not always easy.

Take Quality Systems Inc. (Nasdaq:QSII), for example.

The company’s stock languished from January 1997 to March 1998 in a nearly flat and very tight trading band that had to make more than a few shareholders question their investment when you consider that the S&P 500 returned more than 47% over the same time frame. Worse, the stock actually dropped to enter the 21st century with gains of just $0.03 per share even though the S&P 500 had doubled!

Skittish investors bailed in a move they would come to regret.

It turns out that QSII was taking steps very similar to those EKSO is taking today. Senior executives were positioning the company to capture a much bigger prize that was not immediately apparent – the shift to cloud computing.

That seems obvious today, but back then QSII made a very deliberate pivot to capture the thousands of hospitals and medical care providers who needed to… who had to… shift to cloud computing to keep costs down and efficiency up. Earnings soared an extraordinary 344% from fiscal year 2000 to fiscal year 2001 as the company led the revolution driving two of our Unstoppable Trends – Medicine and Technology.

Only five years later the stock reached $22 a share in January 2006. Investors who stuck with it laughed all the way to the bank for having the extraordinary patience to clean up with a 3,135% gain that turned every $1,000 invested into more than $32,350.

Monster Beverage Corps. (Nasdaq:MNST) is another one that didn’t feel like a winner to early investors either.

The company spent the four years from 1999 to mid-2003 drifting between $0.20 and $0.35 a share before making a shrewd pivot to move in on another of our Unstoppable Trends:Demographics.

Not many people noticed at the time, but energy drink consumption among Americans soared 5,000% from 2000-2014 while energy drink sales rose from $3.8 billion in 1999 to $27.5 billion in 2014, according to Quartz. But I’ll guarantee you that MNST shareholders did.

The stock eventually returned more than 89,900% from 1999 levels turning every $1,000 invested into $890,000 by August 2016.

I believe Ekso has the same kind of potential.

To that end, CEO Thomas Looby is doing exactly what I expected he would do when he assumed command, which is pivot the company from lower profitability segments to segments with higher profitability and much bigger potential markets. He’s an expert in commercialization and that’s why he was put in place at the helm.

The numbers, of course, reflect what he’s doing and his progress even though the share price doesn’t…yet.

Device revenue for Ekso is up 36.36% year-over-year for the most recent quarter, even as the company underwent a strategic shift from engineering service revenue to more profitable sectors like medical devices.

Ekso’s device revenue growth is long-term, up more than 250% in the first nine months of 2016 to $11.2 million versus the $3.1 million in posted in the first three quarters of 2015.

Research and development expenses are up 48% too however they’re not growing anywhere near as fast as revenues, which is good because it means the company is spending wisely.

Cash on hand as of September 30, 2016, totaled $12.8 million, up sharply from the $7.2 million Ekso possessed when I first recommended the company. It’s a strong sign that the company has not just the vision but the resources to succeed.

At the end of the day, Ekso is still a speculative holding and you should treat it as such when it comes to your portfolio. That means not betting the farm and not going overboard when it comes to augmenting your core investments.

Patience is not just a virtue as the old saying goes. In this case, I think it’s also a path to profits…

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http://moneymapreport.com/2016/11/21/holiday-trading-can-be-dicey-but/#commentsMon, 21 Nov 2016 17:37:58 +0000http://moneymapreport.com/2016/11/21/holiday-trading-can-be-dicey-but/As the “Trump effect” continues, Keith sheds some light on what’s powering it, and why most investors will miss out. The post Holiday Trading Can Be Dicey, But… appeared first on Total Wealth Research. Powered by WPeMatico